Daniel Otera
In a move that sent shockwaves through global markets, US President Donald Trump announced a sweeping set of new tariffs late Thursday evening, targeting pharmaceuticals, heavy trucks, and home furnishings. The announcement, made on his Truth Social platform, marks the most aggressive trade action since April’s global tariff blitz and signals a significant escalation in the ongoing trade war between the United States and key international partners.
Trump declared a 100 per cent tariff on “any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America.” He also imposed a 25 per cent levy on “all ‘Heavy (Big) Trucks’ made in other parts of the world,” protecting American manufacturers including Peterbilt, Kenworth, Freightliner, Mack Trucks, and others.
“We will be imposing these tariffs for many reasons, but above all else, for National Security purposes!” Trump wrote, framing the tariffs as essential to safeguarding strategic industries while signaling a bold escalation in the trade war.
The truck tariffs are expected to hit foreign competitors such as Sweden’s Volvo and Germany’s Daimler, whose brands include Freightliner and Western Star. Shares in both companies fell sharply in after-hours European trading, reflecting market jitters over the sudden intensification of the trade war.
Home renovation materials were also caught in the crosshairs. Trump imposed a 50 per cent tariff on “all Kitchen Cabinets, Bathroom Vanities and associated products,” alongside a 30 per cent levy on upholstered furniture. According to the United States International Trade Commission, imports primarily from Asia accounted for 60 per cent of all furniture sold in 2022, including 86 per cent of wood furniture and 42 per cent of upholstered items. Retailers such as Wayfair and Williams Sonoma, heavily reliant on imports, saw their shares tumble in after-hours trading.
This latest move follows a Section 232 investigation launched earlier this year into truck imports. The trade law provision grants the president broad authority to impose restrictions on imports deemed threats to national security. Trump has extensively utilized Section 232 powers in previous rounds of tariffs, aiming to strengthen US manufacturing and challenge trading partners he claims have exploited American industries.
The new tariffs are likely to rekindle inflation concerns in the world’s largest economy, as Trump pursues a protectionist agenda in the name of reviving domestic manufacturing. His administration had already implemented a baseline 10 per cent tariff on all countries, with higher individual rates on nations running significant trade surpluses with the US.
Emergency powers have also been deployed to impose additional tariffs on Canada, Mexico, and China, citing concerns over fentanyl trafficking and illegal immigration. Analysts note that the interaction between these October tariffs and existing trade restrictions could have broad implications, leaving businesses and international partners to navigate a complex and intensifying trade war.
As global markets brace for the fallout, the latest measures underscore that Trump’s trade war strategy remains central to his economic and national security agenda. From pharmaceuticals to trucks to home furnishings, few sectors appear insulated from the ripple effects, highlighting the far-reaching impact of protectionist policies in a highly interconnected world.